To repay a sum of money borrowed 5 months earlier a man agreed to pay 529.75.Find the amount borrowed if the rate of interest charged is 4.5%
Answers
Let The Principal = x
Rate Percent = 5%
Time = 2 years = 1+1
Interest = PRT/100
= x * 5 * 1/100
= x/20
Den he pays 3150 at the end of first year
So principal for second year = x + x/20 - 3150
= 21x/20 - 3150
Interest for second year = (21x/20 - 3150) * 5*1 /100
= (21x/20 - 3150) /20
So amount left after second year = (21x/20 - 3150) + [(21x/20 - 3150) /20]
He clears the amount by paying 4410 at the end of the second year
So,
21x - 3150 * 20 + 21x - 3150 = 4410
-------------------- ---------------
20 400
420x - 3150*20*20 + 21x - 3150 = 4410
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400
441x - 1263150 = 4410*400
441x - 1263150 = 1764000
441x = 1764000+1263150
441x= 3027150
x = 6864.28
Sum Of Money = Rs 6864.28